A form of title insurance that protects you, the new owner, in the event that someone challenges the fact that you own the home or states they have some claim of ownership or right to use the property, or if some other title defect adversely affects your title. The good news is the policy is good for as long as you or your heirs own the property. The cost of an owner’s title insurance policy is paid to the title company. The borrower or seller might pay for this depending on the state and sometimes the county.
Quick Heads Up: While you will see and hear that an owner’s title insurance policy is “optional,” you should do the research to determine how important it is. This is likely to be the biggest investment you have ever made, so you should protect that investment. You bought car insurance, right?